As the President of the Board of Tradex Swiss AG, I would like to take this opportunity to inform all our clients of the facts pertaining to the Swiss Federal Banking Commission’s ( “SFBC”) investigation of Tradex Swiss AG (“TSAG”). Expert legal opinion confirmed two years ago and again as recently as November 2007 that a Swiss banking license was not required to conduct the business of Tradex. No charges of any kind have been filed against TSAG or any of its officers or employees, clearly because there would be no basis for such an action.

Below is a factual summary of events pertaining to this investigation:
1. On July 3, 2007, The SFBC ordered an investigation into the activities of TSAG to establish whether any of the activities required TSAG to operate under a Swiss banking license.
2. The SFBC saw fit to impose a ‘Superprovisory Decree’ on a suspicion brought upon by the previous Board of Directors (Stefan Thut & Beat Knoblauch) of TSAG without proper prior analysis of such complaint or suspicion.
3. The SFBC appointed Lutz Rechtsanwaelte (LR), a legal firm from Zurich, Switzerland, to conduct the investigation.
4. LR immediately seized control of all TSAG premises, databases, trading platforms and assets with the assistance of Local- Kanton- and Federal Police, which is not a normal action in an investigation of this nature.
5. LR was unilaterally appointed by the SFBC to the board of directors of TSAG with sole signatory rights and the SFBC removed NMJ van Rensburg, K Meier and T. Angst (legitimate management) from any managerial authority or responsibility in TSAG from 03.07.2007.
6. The ‘Superprovisory Decree’ empowered LR to assume complete management of the company whilst the investigation is conducted.
7. During the interviews on the 5th day of July, key personnel of TSAG clearly and without any doubt explained in great detail how the activities of TSAG were limited to:
a. Assisting clients in trading the Forex markets,
b. With specific power of attorney, trading client’s accounts from our Boston, USA office.
8. LR in their attempt to conduct an investigation used their powers under the decree to strip the shareholders and then current management of all management powers and access to any company assets, facilities, records and bank accounts. Thus, making it virtually impossible for any Swiss employees or the legitimate management to assist with the investigation, if so required.
9. It was also again pointed out that all TSAG activities were clearly authorized in the official business registration documents of TSAG, which essentially is a contract with the Swiss Governing Authority, and these activities do not require a banking license, and thus do not fall under the jurisdiction or control of the SFBC.
10. I would like to point out that TSAG in Switzerland merely acted as an administrative office, had no traders, had no dealing desk and did not advertise any related jobs in Switzerland. TSAG had 4 full time administrative employees. International IBs, employees and managers would come to Switzerland for education and training on a regular basis.
11. A “Superprovisorische decree” is normally only in effect for a limited period of time to establish whether there is a basis to conduct an investigation. It is normally an order to determine possible wrongdoing and to pledge assistance and guidance to clients and management.
12. This decree has however been in effect for 9 months, which is possibly a violation of international human rights, and possible local and international laws.
13. Until today LR has not submitted any factual evidence to the SFBC to determine whether TSAG contravened any banking or broker dealer laws in Switzerland.
14. LR has ignored all requests and communications through lawyers and directly from the former management to assist with the investigation and to explain the detailed workings and reporting possibilities of the Tradexecutioner platform and TSAG as a business.
15. LR stripped all Swiss Bank Accounts of TSAG of all funds for their fees to conduct the investigation, a significantly large amount. This action came to the attention of the Boston management and they immediately approached the Superior Court in Massachusetts to request an injunction against the instruction of LR and the SFBC to transfer all TSAG deposits to Switzerland. Deposits in Bank of America in Boston represent client deposits and should be protected against all misappropriation and mismanagement as TSAG has done since inception.
16. LR did not honor or pay any employee salaries, rent, bills etc from 05.07.2007. As a result of this Tradex Swiss AG will face possible criminal charges for contravening labor laws in America. LR saw it fit to instruct Bank of America to transfer $650 000 on 6 December 2007 to cover their fees. Tradex made it perfectly clear to LR that the account in BofA contained CLIENT FUNDS!!!
17. As a result of LR blocking all TSAG bank accounts, including the accounts in Bank Of America Boston, margin calls could not be funded. This action contributed to possible losses for clients and TSAG.
18. Furthermore LR instructed Bank Of America to transfer approx. US$ 6.1m in August from the TSAG accounts to Switzerland, to be placed under their control. LR and the SFBC ignored repeated requests from TSAG lawyers to submit a reason for this request. This action would have been a direct breach of the Agreement between TSAG and our clients.
19. In the normal course of business all margin accounts, client deposits and operating TSAG funds should be held in separate accounts. The transactional Forex margin account in Bank of America and the commercial account in Credit Suisse in Switzerland to name a few.
20. A Superior Court judge in Massachusetts has denied the transfer of the funds referred to in paragraph 16, as requested by LR, in the interest of protecting client funds and employee salaries.
21. Even though I had nothing to do with the Superior Court injunction preventing LR or the SFBC from transferring client funds to Switzerland, I do in principle support the premise of the decision. Protecting the interests of TSAG clients is my foremost concern and secondly, the protection of the company and its assets against the unscrupulous, unprofessional conduct of LR.
22. Neither LR nor the SFBC has provided an opportunity for me to meet with them directly to discuss this matter. They have informed TSAG lawyers that they would only meet with me if I authorize the transfer of the approx US$ 6.1m to Switzerland from Bank of America, again not giving a reason for the transfer request.
23. Despite the fact that I have been stripped from my management powers as earlier indicated and can therefore not consent to any managerial action, I would not have authorized the transfer of the aforesaid funds due to the contractual agreement with our clients and the danger and fear that client funds or substantial portion thereof could be applied to fit the legal bill of LR. In any event, it is a decision of the Superior Court of Massachusetts that prevents the transfer of the funds, for the protection of clients.
24. LR informed the TSAG lawyers that failure to transfer the approx. US$ 6.1m to Switzerland will result in a “bad” report to the SFBC. As stipulated earlier, I have no control over the movement of these funds, and therefore the threat of a bad report cannot be acted on by me in any way.
25. Expert financial- and legal opinion has placed the market value of TSAG as drastically reduced, and goodwill- and perception of the company has been seriously compromised with the actions and in-actions of LR.
26. No preliminary report has been submitted by LR to the SFBC, which might detail a possible contravention of regulations or laws in Switzerland, nor have they filed any charges against TSAG or TSAG previous management to justify such a lengthy time to submit a fairly easy report. Thus far I have only been accused of ‘non-cooperation’ because I will not authorize the transfer of client funds from the USA to Switzerland.
27. I have also been accused of ‘non-cooperation’ for reactivating the www.tradexfx.com and www.tradexswiss.com websites, which was only done 9 weeks after the investigation started as a result of the NON COMMUNICATION of LR with the clients.
28. www.tradexfx.com is not an asset of TSAG, and was provided as a service, hosting a website for TSAG. www.tradexfx.com is independent of TSAG. www.tradexswiss.com website has been enhanced after 10 weeks of the investigation to provide clients the opportunity to present requests for information or assistance as LR failed terribly to inform clients of the progress of the investigation. The websites also mentions the fact that the website and the corporation are undergoing “restructuring”.
29. I am expending considerable personal funding to protect the clients of TSAG and the company itself to have this investigation concluded in order for the business to continue. However, LR and the SFBC are stalling all my efforts, for reasons only known unto them.
30. Our lawyers demanded that the report be submitted as there appears to be no legal basis for their actions, and I am- and will be pursuing every legal avenue to defend the position of TSAG, and protect the interests of TSAG clients.
31. Since the incorporation of TSAG ALL withdrawal requests, account adjustments, deposit adjustments were honored and completed within 2-3 hours. TSAG never failed a fair request from any of our customers.

Therefore in conclusion, I have all reason and proof to believe that LR blatantly delayed the report and transgressing all applicable laws in their desperate attempt to discredit the previous management of TSAG, TSAG the company and me personally. This will obviously be to the detriment of all our clients and will establish a firm basis for a significant action for damages.


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